dave ramsey turq 300KENTUCKY (5/5/13) – This week Dave discusses Essential expenses and She stole his identity.
 
Dear Dave,
I’m following your plan, and currently I have $14,000 in my emergency fund. What are essentials for three to six months of expenses? - Brian

Dear Brian,
Basically, you should ask yourself this question: What would it take to operate my household for a month? There are several different things that could be classified as “essentials,” but if you take those things and multiply the number by three, four, five or six, you’ll see how much money you need to have a fully loaded emergency fund of three to six months of expenses. This is Baby Step 3 in my plan.

Some people get really technical about exactly how many months of expenses they need to save in this range. And that’s okay. You can take a little time to evaluate things before moving on to Baby Step 4, which is investing 15 percent of your household income into Roth IRAs and other pre-tax retirement plans.

Believe me, it’s a great feeling to have a big pile of cash sitting there just for a rainy day. You don’t want to go nuts and make it so big that you sacrifice retirement or other important aspects of your life, but after a point you shouldn’t be too concerned whether you have three months or six months of expenses—or somewhere in between—saved just for emergencies.

Having a nice emergency fund, along with no debt, creates a wonderful sense of financial peace! - Dave
 
Dear Dave,
If a wife takes out a credit card in her husband’s name without his knowledge, and they get divorced, can the husband claim identity theft? - Nancy

Dear Nancy,
Absolutely! Unless they have power of attorney, anytime someone opens an account in a name other than their own, they have stolen an identity. Being married to someone doesn’t give you the right to sign their name to a document.

I knew a guy in the real estate business years ago who was doing a lot of property deals under his own name. Occasionally, the title company would require his wife’s signature, and he would sign her name on the papers himself. Sometimes he signed her name after calling her up and explaining what was happening, and she was okay with the situation. Then, he signed some papers she didn’t know about, and it came back to bite him. He was charged with criminal fraud!

You cannot legally sign your spouse’s name without first having power of attorney privileges. If you do, it’s called identity theft. It’s a crime anytime you lie to get money. - Dave

* Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.


Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

LIKE SurfKY on Facebook - Click here to LIKE us now.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

In Other News...

Daviess County Captures Ninth District Regular-Season Crown

OWENSBORO, Ky. (5/2/15) — The Daviess County softball team claimed a Ninth District regular-season championship with a… Read More

Most Read This Week

April 28, 2015 4026

Search for Stolen Vehicle Ends with Woman Charged…

by SurfKY News
April 27, 2015 3383

Online Petition Seeking Re­opening of Shanice…

by Samantha Carver, SurfKY News
April 28, 2015 3229

Man Charged with Stalking Smoke Shop Clerk

by MPD
April 27, 2015 2768

Hopkins County Drug War ― Are We Winning?

by Doreen Dennis, SurfKY News
April 30, 2015 2673

Family Says 'Goodbye' to Dog After It Allegedly…

by Doreen Dennis, SurfKY News

Most Read This Month

April 17, 2015 15183

An Open Letter from an Addict

by Olivia Kirks
April 23, 2015 8380

Man Charged with Sodomy, Incest/Victim under 12

by SurfKY News

Stories Trending Now

May 02, 2015 881

Frymire’s Life Accomplishments, Dedication to MCC…

by Tammy Holloway, SurfKY News
May 01, 2015 743

Above and Beyond: Leighann Stroud

by Gary Gates, SurfKY News
May 02, 2015 423

Don't Bet on Supreme Court Overturning Marriage…

by Richard Nelson
May 02, 2015 416

Homegrown by Heroes Receives Donation from…

by Ted Sloan
May 02, 2015 365

New Mather Metals to Expand in Franklin

by Office of the Governor
May 02, 2015 361

Weeknight activities the whole family can enjoy

by SurfKY News
May 02, 2015 340

Hooked on Science - 'Kentucky Derby Balloon Race'

by Jason Lindsey
May 02, 2015 295

Happenings, Meetings Listed for Following Week

by Amber Averitt, SurfKY News
May 02, 2015 258

Conquering the clutter: Cleanliness with kids is…

by SurfKY News